German property group Patrizia has disposed of a portfolio of 12 retail parks located across Western Germany to Meag, the asset manager for Munich Re and Ergo.
The portfolio, which has been sold on behalf of clients, comprises 12 established retail assets totalling 180,000 m2. Although financial details were not disclosed, the portfolio is believed to have a value of some €400 mln.
The portfolio was assembled by Patrizia between 2005 and 2012 as part of the company’s strategy to invest in food-anchored retail in attractive catchment areas across Europe. Following the implementation of an active asset management strategy, Patrizia has regularly invested to ensure these assets are fit for purpose in a dynamic retail market. Patrizia has increased the occupancy rate to 97% during holding period with a WALT of 10 years.
Strong tenant covenants anchor the portfolio which has a 45% food retail component and contribute around two thirds of the total rental income, including supermarket chains Kaufland and Edeka, Germany’s largest supermarket group. The properties span seven of Germany’s Western states and an average catchment of over 220,000 residents.
Martin Trodden, fund management at Patrizia, commented: 'Having enhanced the income profile of these assets over many years, this sale presented us with an opportunity to crystalise our investment and deliver strong returns to our clients. German retail, especially food anchored, has been an attractive sector to invest in, due largely to its ability to deliver sustainable income, while our programme of active asset management of this portfolio has further bolstered returns.'
Patrizia manages more than €6.5 bn in the retail sector throughout Europe with €3.5 bn invested in the German food retail sector.
Patrizia was advised by JLL and Gleiss Lutz.